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Master Company processes a raw material that produces two joint products - Magna and Delta. At split-off, Magna can be sold for $5 per pound and Delta can be sold for $7 per pound. It costs $240 to produce a batch of Magna and Delta. Each batch contains 16 poun of Magna and 8 pounds of Delta. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Allocate the joint cost of producing Magna and Delta using the physical measurement method. To Magna: $ To Delta: $ b) Allocate the joint cost of producing Magna and Delta ore using the relative sales value method. Total Revenue: $ To Magna: $ To Delta: $ c) The sales manager has advised that a batch of 8 pounds of Delta can be processed further at an additional cost of $25. With this additional processing, the 8 pounds of Delta can be sold for $10 a pound. Allocate the $240 cost to Magna and Delta using the net realizable value method if Delta is processed further. Total net realizable value: $ To Magna: $ To Delta: $

Master Company processes a raw material that produces two joint products - Magna and Delta. At split-off, Magna can be sold for $5 per pound and Delta can be sold for $7 per pound. It costs $240 to produce a batch of Magna and Delta. Each batch contains 16 poun of Magna and 8 pounds of Delta. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Allocate the joint cost of producing Magna and Delta using the physical measurement method. To Magna: $ To Delta: $ b) Allocate the joint cost of producing Magna and Delta ore using the relative sales value method. Total Revenue: $ To Magna: $ To Delta: $ c) The sales manager has advised that a batch of 8 pounds of Delta can be processed further at an additional cost of $25. With this additional processing, the 8 pounds of Delta can be sold for $10 a pound. Allocate the $240 cost to Magna and Delta using the net realizable value method if Delta is processed further. Total net realizable value: $ To Magna: $ To Delta: $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Company processes a raw material that produces two joint products - Magna and Delta. At split-off, Magna can be sold for $5 per pound and Delta can be sold for $7 per pound. It costs $240 to produce a batch of Magna and Delta. Each batch contains 16 pounds of Magna and 8 pounds of Delta. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Allocate the joint cost of producing Magna and Delta using the physical measurement method. To Magna: $ To Delta: $ b) Allocate the joint cost of producing Magna and Delta ore using the relative sales value method. Total Revenue: $ To Magna: $ To Delta: $ c) The sales manager has advised that a batch of 8 pounds of Delta can be processed further at an additional cost of $25. With this additional processing, the 8 pounds of Delta can be sold for $10 a pound. Allocate the $240 cost to Magna and Delta using the net realizable value method if Delta is processed further. Total net realizable value: $ To Magna: $ To Delta: $
Transcribed Image Text:Master Company processes a raw material that produces two joint products - Magna and Delta. At split-off, Magna can be sold for $5 per pound and Delta can be sold for $7 per pound. It costs $240 to produce a batch of Magna and Delta. Each batch contains 16 pounds of Magna and 8 pounds of Delta. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Allocate the joint cost of producing Magna and Delta using the physical measurement method. To Magna: $ To Delta: $ b) Allocate the joint cost of producing Magna and Delta ore using the relative sales value method. Total Revenue: $ To Magna: $ To Delta: $ c) The sales manager has advised that a batch of 8 pounds of Delta can be processed further at an additional cost of $25. With this additional processing, the 8 pounds of Delta can be sold for $10 a pound. Allocate the $240 cost to Magna and Delta using the net realizable value method if Delta is processed further. Total net realizable value: $ To Magna: $ To Delta: $
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